State Regulations and the Threat to Small Business

by Henrietta “Etta” Waterfield, former Santa Maria Planning Commissioner, Candidate for the 33rd Assembly District seat

California was once the world’s sixth largest economy—now California’s unemployment continues to rise as other states are pulling themselves out of the recession.

How could this happen? It’s simple: Sacramento is full of politicians, not people who understand business. Need proof? State regulations cost California $493 billion and 3.8 million jobs annually in collateral damage. That’s according to a state mandated report, available at the California State Business Advocate’s website.

For example, the state’s un-elected bureaucrats on the Air Resources Board recently instituted an expensive new diesel fuel regulation that requires the owners of almost 1 million trucks and busses to replace the engines and/or install expensive new equipment.

Will it help clear the air? That’s hard to say. But with the economy in a continued slump, it will ensure that California has fewer businesses, fewer jobs, and less tax revenue for our already out-of-balance state budget.

Similarly, AB32 requires the state roll back carbon emissions to their 1990 level, while it severely punishes businesses that cannot comply. Limit emissions to the 1990 level? I want to see Sacramento limit its budget to its own 1990 level —then we can talk.

The fact is, Sacramento continues to raise taxes to keep their budget “balanced” and special projects funded—while they pile business-destroying regulations onto the businesses that bring in their revenue.

Our legislators need to consider the cost of their actions. As they pile on restrictions aimed at guiding the state to a better future, they ignore that damage inflicted on California businesses and families. When these things are considered, it is no wonder that Sacramento politicians cost the state $493 billion and 3.8 million jobs annually.

I have been working in economic development since the early 1990s. Even during the hard economic times with the recession of the early ‘90s, I could still work with businesses and local and state governments to bring jobs to California.

This recession is different; jobs are leaving California because the regulatory environment is too burdensome. Sacramento continues to pile regulations onto how businesses are run—and Sacramento runs them into the ground.

As soon as I get into office, I will call for an immediate moratorium on all new business regulations—this is the only way to save California business and turn California golden again. I believe that California is worth fighting for—and that’s exactly what I’ll do in the Assembly.

Republican economic growth expert Etta Waterfield has spent the past decade improving the Central Coast’s economy and business climate. As the Economic Developer for the Santa Maria Valley Chamber of Commerce, Etta has worked to attract new businesses and foster favorable economic conditions in the area. She also served for the past six years on the Santa Maria Planning Commission.

Her service led Assemblyman Sam Blakeslee to name Etta Waterfield the 2009 “Woman of the Year” for the 33rd Assembly District. Blakeslee praised her stating that she possesses an “energy and a grace that inspire people to work with her.”

Visit Etta on the web here.

California’s Fine Tuned Job Killing Machine

by Andy Caldwell

California, on the brink of bankruptcy, has amassed debt in excess of $200 billion. No other State faces a problem of this magnitude. I remind you that California’s Legislature began racking up tens of billions of dollars in debt before the current national recession began, with the tacit support of voters who approved tens of billions in bond measures. Gray Davis was recalled, principally because of debt burden, but nothing was gained in the process. The deficit has since soared.

Taxes in the State of California seriously hinder our economy, but another reason the California economy continues to spiral out of control has to do with the regulatory climate in the State. The regulatory climate also serves to explain why the State of California will be the last in the nation to recover, if we recover.

All of the sectors of our economy, including manufacturing, industry, energy, housing, transportation, farming, ranching, fishing, timber and mining have been hemorrhaging jobs as they have suffered the death of a thousand cuts due to regulations imposed upon us by our own government. Less business activity, either due to taxes or regulations, means fewer jobs and that means less revenues to the State. It is a viscous cycle.

A combination of State and Federal Rules, has created a cumulative impact unique to our State. The combination of regulators and regulations including the California Air Resources Board, the State Water Quality Control Board, the State Coastal Commission, the CA. Department of Fish and Game, the California Environmental Quality Act, the Global Warming Reduction Act (AB32), the Diesel Engine Rule and the Endangered Species Act have served to relegate our economy, which was once one of the largest economies in the world, to Third World status. Our debt burden and the regulatory climate are preventing economic recovery.

A report issued recently by Cal State Economists indicates that regulations are costing the California Economy some $500 billion per year! The report indicates that the State of California in essence eliminates 3 million jobs per year by hamstringing the economy with regulations. If the 3 million jobs were allowed to be created they would generate nearly $20 billion in additional tax revenue to the State!

Our elected representatives are hoping in time that the California economy will recover by some unforeseen miracle or that things will get so bad that voters will approve new taxes in order to alleviate our collective misery. I am of the opinion that the economy is not going to recover on its own because of the aforementioned impediments and burdens placed upon the economy by our government. Furthermore, if enough voters can be duped into approving new taxes, things are only going to get worse. No economy has ever taxed itself into prosperity. It is mathematically and economically impossible to do so.

When taxes and regulations threaten the very existence of a business, then the owners are either forced out of business or they get their business out of the State they are in.

Sacramento, get a clue!

Andy Caldwell is the Executive Director of COLAB, the Coalition of Labor, Agriculture and Business of Santa Barbara and San Luis Obispo Counties, and a 41 year resident of the Central Coast. For more information, visit the COLAB website.